Permits for drilling, maintaining, and operating oil and gas wells in the town shall be granted only to responsible persons who have met, to the satisfaction of the Town Board of Trustees, all of the following requirements:
(A) Payment of $500 to the Town Clerk for:
(1) The issuance of such permit; and
(2) The annual fee for the first year of police, safety, and sanitary inspection.
(B) Depositing with the Town Clerk, to become and remain a part of the permanent records of the municipality, a valid and legal consent, in writing, fully executed and acknowledged by the owner of the lot where the oil or gas well is to be drilled, agreeing that all rents and royalties accruing from oil, gas, or casing head gas produced from said well shall be prorated among all the owners of the oil, gas, and other mineral rights in and under said block in the proportion that each owners interest in the block bears to the whole of the block;
(C) Depositing with the Town Clerk, to become and remain a part of the permanent records of the municipality, a valid and legal consent, in writing, fully executed and acknowledged by the owner or owners of not less than 51% of the oil, gas, and other mineral rights of the block in well upon the lot or lots as indicated in such application; and
(D) Depositing with the Town Clerk, to become and remain a part of the permanent records of the municipality, good and sufficient bonds covering each separate oil well for which permits are requested executed by one or more responsible bonding, insurance, or indemnity companies authorized to do business within the state (such bond to run in the name of the town) and be conditioned that the applicant will pay for injury to the person or damages to re-allot personal property (including death drilling, operation, or machinery, tanks pipe line, or appurtenances thereto) and that such applicant will also abide by and comply with all the provisions of this and other ordinances of the municipality.
(1) Such bond or bonds shall further provide that insolvency or bankruptcy of the insured shall not release the insurance company from any payment due under such bond or bonds. If, by reason of such insolvency or bankruptcy, an execution on the judgment against the insured is returned and unsatisfied, the judgment creditor shall have a right of action against the insurance company to recover the amount of said judgment to the same extent that the insured would have had to recover against the company the insured paid judgment.
(2) Such bond or bonds shall further provide against the cancellation until 30 days’ notice in writing of such intended cancellation shall have been given the Town Board of Trustees by the delivery of written notice to the Town Clerk. Upon such notice being given, the person to whom such permit has been issued shall immediately be notified thereof, and if such person shall fail within 30 days after having received notice of such intended cancellation to provide other sufficient bond or bonds in compliance with the terms and provisions of this chapter, then the permit issued to such person shall be automatically suspended for all purposes, and all operations being carried on under such permit shall cease until such other sufficient bond or bonds have been posted with the Town Clerk and approved, by motion of the Town Board of Trustees, at a regular or special meeting.
(3) Such bond or bonds, among other things, shall cover and indemnify such town and the inhabitation thereof against loss of or damage to private or public water supply.
(4) The total liability under such bond or bonds in the case of each oil or gas well shall not be less than $50,000 and shall be made for a period of not less than one year, and no oil or gas well shall be drilled, maintained, or operated at any time or for any period of time without currently valid and legal bond or bonds in such amount being on deposit with said Town Clerk.
(Prior Code, § 16-3)